I should just let ones who are still in the tax game answer this, but I believe the answer is the following:Tax related parenting question.
We have a dependent care FSA maxed out to $5k annually.
We spend over $5k on daycare. I want to reimburse myself for all my kids doctor visits thus far as well.
If I reimburse myself for $300 in Dr visits, and $4700 in daycare, can I also claim 'total daycare dollars' minus $4700 on my taxes for child care credit at the end of the year?
Is there a strategy to maximize the non-daycare reimbursements for the dependent care FSA so that a larger child care tax credit can be realized?
Normally, you can only claim up to 3,000 in child care expenses for one child (6,000 for 2 or more), but since you have a child care FSA, you get up to 5,000 in income tax break assuming you use it all. So even though you have more than 5k, you're out of luck. Be glad you have that option available because you're saving yourself income tax on an extra 2,000. The employer will report the 5,000 in dependent care FSA on the W2 so it's going to be put on your return and then you just need a statement from daycare for your records in case of an Audit that shows you had at least 5,000 in child care costs. Plus by having the employer FSA, you are also saving FICA tax, I believe, so double win. You should put all your expenses on your tax return but that is how I believe it will work.
There is a difference between dependent care FSA and health care FSA. If you have both, Awesome. You can't use one for the other. You could in your head reimburse the doctor visits but it doesn't change anything.
Do you have an FSA option for medical care? You can have both at the same time.
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